Voya 2013 Annual Report Download - page 91

We are also at risk that key distribution partners may merge or change their business models in ways that
affect how our products are sold, either in response to changing business priorities or as a result of shifts in
regulatory supervision or potential changes in state and federal laws and regulations regarding standards of
conduct applicable to distributors when providing investment advice to retail and other customers.
The occurrence of natural or man-made disasters may adversely affect our results of operations and financial
condition.
We are exposed to various risks arising from natural disasters, including hurricanes, climate change, floods,
earthquakes, tornadoes and pandemic disease, as well as man-made disasters and core infrastructure failures,
including acts of terrorism, military actions, power grid and telephone/internet infrastructure failures, which may
adversely affect AUM, results of operations and financial condition by causing, among other things:
• losses in our investment portfolio due to significant volatility in global financial markets or the failure
of counterparties to perform;
• changes in the rate of mortality, claims, withdrawals, lapses and surrenders of existing policies and
contracts, as well as sales of new policies and contracts; and
• disruption of our normal business operations due to catastrophic property damage, loss of life, or
disruption of public and private infrastructure, including communications and financial services.
There can be no assurance that our business continuation and crisis management plan or insurance
coverages would be effective in mitigating any negative effects on operations or profitability in the event of a
disaster, nor can we provide assurance that the business continuation and crisis management plans of the
independent distributors and outside vendors on whom we rely for certain services and products would be
effective in mitigating any negative effects on the provision of such services and products in the event of a
disaster.
Claims resulting from a catastrophic event could also materially harm the financial condition of our
reinsurers, which would increase the probability of default on reinsurance recoveries. Our ability to write new
business could also be adversely affected.
In addition, the jurisdictions in which our insurance subsidiaries are admitted to transact business require
life insurers doing business within the jurisdiction to participate in guaranty associations, which raise funds to
pay contractual benefits owed pursuant to insurance policies issued by impaired, insolvent or failed insurers. It is
possible that a catastrophic event could require extraordinary assessments on our insurance companies, which
may have a material adverse effect on our business, results of operations and financial condition.
The loss of key personnel could negatively affect our financial results and impair our ability to implement our
business strategy.
Our success depends in large part on our ability to attract and retain key people. Intense competition exists
for key employees with demonstrated ability, and we may be unable to hire or retain such employees. Our key
employees include investment professionals, such as portfolio managers, sales and distribution professionals,
actuarial and finance professionals and information technology professionals. While we do not believe that the
departure of any particular individual would cause a material adverse effect on our operations, the unexpected
loss of several of our senior management, portfolio managers or other key employees could have a material
adverse effect on our operations due to the loss of their skills, knowledge of our business, and their years of
industry experience as well as the potential difficulty of promptly finding qualified replacement employees. We
also rely upon the knowledge and experience of employees involved in functions that require technical expertise
in order to provide for sound operational controls for our overall enterprise, including the accurate and timely
preparation of required regulatory filings and U.S. GAAP and statutory financial statements and operation of
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